Frontier Financial Retraces Gains As Vote LoomsEVERETT, Wash. ( TheStreet) -- One day after surging on heavy volume, Frontier Financial ( FTBK) shares retraced some of those gains Wednesday on fears the deal with SP Acquisition Holdings ( DSP) will not close. Frontier shares were lately down 19 cents, or 12.3%, to $1.35. Share volume Wednesday topped 3.8 million, well above the 50-day average daily volume of 515,000 shares, according to the Nasdaq's Web site. SP Acquisition, a New York-based asset-acquisition company sponsored in part by Steel Partners, said in July it would buy Frontier for about $24 million in stock and warrants. In a regulatory filing Wednesday, SP Acquisition said that Frontier shareholders would receive an implied consideration of roughly 52 cents a share "resulting in an implied discount of approximately $1.02 per share of Frontier common stock." SP Acquisition warrants, which had traded near 40 cents last week, had fallen to 13 cents Wednesday, an indication traders believe there is a low probability of a deal being completed. The filing also said Frontier expects that its Tier 1 leverage capital ratio will drop below 4% as of Sept. 30, which would mean the bank would be considered "undercapitalized" by federal regulatory guidelines. In March, Frontier said it signed a Cease and Desist Order with the Federal Deposit Insurance Corp. and State of Washington Department of Financial Institutions. Under the agreement, Frontier agreed to achieve and maintain a Tier 1 capital level of 10% of its total assets. The bank's Tier 1 capital ratio at year end 2008 was 8.53%.
YRC Worldwide Surges as Bankruptcy Fears SubsideYRC Worldwide ( YRCW) shares jumped Wednesday on heavy volume as it appears the threat of bankruptcy has subsided. YRC Worldwide was lately up $1.14, or 26.2%, to $5.49, making it one of the biggest price gainers on the Nasdaq on Wednesday. Volume topped 28.4 million shares at 3 p.m. EDT, more than double the 50-day average daily volume of 8.3 million, according to the Nasdaq's Web site. If Wednesday's gains hold, YRC shares will have finished higher 13 out of 16 trading sessions in September, reflecting optimism the company will not be forced to file for bankruptcy protection. Earlier this month, YRC Worldwide amended a $950 million credit agreement with lenders as part of its efforts to stave off bankruptcy. Short interest is very high on YRC Worldwide, as it appears traders had banked on the company filing for bankruptcy protection. YRC sported a short interest float of 29.3% as of Aug. 26, according to Yahoo! Finance. YRC has a 58 million-share float. Investor posts on Internet message boards for YRC Worldwide noted the upside momentum, as the stock has surged more than 150% over the last month. Some other traders argued the company should begin considering a secondary offering of common stock.